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tv   Closing Bell  CNBC  November 6, 2013 3:00pm-4:01pm EST

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flame broiled. can you tell the difference in the meat and you can taste the onions more. >> yeah, it does a little different. nielsen tells us mcdonald's spends four times more on advertising than burger king does and burger king tells us its commercials are promoting the big king. instead it's counting on pr stunts like this week's report on tmz that the company bid on elvis presley's house in beverly hills. get it, the king and burger king, however the bid was reportedly rejected even though the company said it was serious. it was only 3.69 million and by the way coincidentally the big king sells for 3.69. about 30 cents cheaper than the big mac. >> keep on eat, thanks for watching "street signs." >> "closing bell" starts right now. are you hungry? >> i'm starved and i don't know why. >> hi, everybody. welcome to the "closing bell." i'm maria bartiromo at the new
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york stock exchange. rally mode once again for stock prices. >> yes, better late than never. i'm bill griffeth. the dow needs to be up. we're well above the high today. that's mine. >> oh, i just blasted your ear. >> can i have this back? we're doing this -- >> it was the big mac that got me. >> up 116 points on the dow industrial average right now. well into regular territory. interestingly, the nasdaq is lower, some high-profile technology stocks are trading down, some think maybe some people are raising some money to get ready for something else to invest in. >> big deal tomorrow. we'll get the pricing tonight on twitter. it could happen as soon as an hour from right now. twitter pricing the ipo breaking earlier on cnbc was the range is said to be moving higher from $25 to $27 a share but you never know, these things. it could go higher than that or lower, bill. cnbc is going to have the news first with the best coverage and analysis. you don't want to switch the
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channel today as we await the twitter pricing. >> also a new list that's getting a lot of attention today. cnbc ranking the priciest neighborhoods in america. now, we won't give you too much of a hint yet. but i can tell you the least expensive market in america is cleveland, ohio. >> you know, i didn't know that, wow, okay. >> so think, what is the opposite of cleveland? just in terms of price? it's the most expensive housing market in the nation. diana olick will do the big reveal. >> beverly hills. >> i'm just not going to say. >> okay. somewhere in california. let's check the markets right now as we approach this final hour for trading. dow jones industrial average up 117 points. 0 0.75%. that would be an all-time high. tonight the nasdaq composite looks like this, we are looking at negative performances here as bill just told you, some tech stocks trading down today
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leading it lower by a quarter of a percent. approaching its own record high, nasdaq composite with a gain of 6.25 points. strong day for the bulls could lead to new records yet again. check in with bob for it. >> weird day. let me put up -- let me put up the major sectors here for you, the major indices, first, the dow is up over 100 points. 10 points and the nasdaq is down? what? the bread is -- the breadthis terrible. it is bifurcating. splitting up as momentum names are getting hit. look what's moving. big cap technology like microsoft and ibm are up. big cap consumer staples names like procter & gamble and coca-cola. for once big cap energy names like chevron exxon are moving. exxon a monster since the report came out. look what's not doing anything.
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all the classic momentum names everybody knows and love, test -- tesla, yelp. all to the downside. elsewhere other sectors breaking down. what was hot, what's been hot all year? bio tech. wait a minute. here's your major etf down 3.7%. >> what? >> these are all the momentum names that everybody is basically getting out of. let me close by noting ipos, five of the six ipos pricing today are to the downside only barracuda to the up side. here's where twitter will trade right behind me all the exci excitement starting to build beginning 9:00 tomorrow morning on twitter. >> yes, we will, thank you, bob. >> let's talk about this. we got downtown josh brown with us. wealth management. josh with us the full two ohour. >> i'm sorry in advance. >> he's here to do twitter, weather, traffic. he's doing it all. jordan waxman from hightower who thinks he knows what the priciest neighborhood is in the country. i saw you nodding your head.
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>> i have a good idea. >> you have a good idea. >> he's not saying. keith fitzgerald from money map press and -- why another rally today up 120 on the dow? what's going on? >> so if you think about just quickly pros and cons, i would say that it's a pro that you could have a dow with a triple digit gain on a day when all stocks you put up that the bears would say are leading the market, a narrow leadership. it's just momentum when, in fact, it's not. you've got new highs in a lot of other areas and don't need netflix to be green. it's not a negative. the negative that i've give you is that the bakes have been kind of a no show. they haven't made a new high since they peaked out in july. september they failed. this month it looks like they might be failing. that would be the area to watch as the tell for whether or not the broader market has legs. banks have to make a new high in order for this to be a legitimate breakout into year
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end and we're not seeing it yet. >> keith, what about you? are you going to sell into that trade? >> you know, it's interesting. i think the banks are a real area of concern but don't agree they're a poker tell. the key area is the consumer tech. seeing a lot of power into that section of the market even though it's a relatively band today. if it produces volume at a good price it says a lot of money wants to chase us into the market so 3% to 5% upside. >> jordan, you're still seeing the mentality we've seen for a couple of years now, by those dips more than selling those rallies. >> that's right. think about the financials. there's still a lack of trust about wall street. there's a huge european bank stress test going on now. you would think that steeper yield curve would help the banks. it hasn't. what's moving today is the large dividend paying stocks, the big caps, the multinationals, the megacaps that haven't moved at all this year relative to the small and midcaps and seeing a little bit of a shift. people buying the laggards.
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why? because it is a slow growth, low interest rate, low inflation environment and that should play well to the megacaps but people have been chasing vapor going after the small and midcaps and the high growth company. >> does that continue? >> i think it continues well into the new year because you'll see new allocation of capital. people are going to realize that even with government dysfunction you can buy multinational companies with great brand names and great good will. the tax issue has been solved 12 months ago so why not own good united states based companies. the u.s. dollar is just basing out. european countries are crisis mode whether it's france or italy or spain. and you're going to see money flow into the united states into big cap equities, not into bonds -- >> i like the idea of a rotation into multinationals year end. they've lagged for a long time because so many are allocating toward this concept where the u.s. is the best house in a bad neighborhood and that's been really played out, i think. i think now you can look cyclically. we have been buying chemical
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stocks since the summer and have gotten less cheap but nobody talks about them. isn't even an etf for them. multinational companies benefit as global pmis continue to expand which is the news we got this week. >> let me bring rick into the conversation. the talk about be will twitter tomorrow but will overshadow the european central bank meeting where the guessing game is whether they'll cut rates. what are you handicapping it in chicago. >> in chicago they're all interested in twitter but trulgly, you know, when you put your treasure at risk for young people sticking with facebook or trying to monetize something that people probably aren't going to like commercials on, i think the ecb is where you really want to pay attention. somebody brought up stress tests. yeah, stress tests are great. too bad we can't get a real stress test or really kick the tires out enough to see if the body shakes because i think they kick them with ballet slippers,
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but that's for another day. i think what you want to notice today is, while we have a different candy that we like, today it's not the nasdaq, you know, this isn't a good high vitamin perfect content diet. we're relegated to eating candy in the stock market but when you're hungry, you know, i guess it suffices. the yield curve steepening is going on with all rates lower. watch that 138, 139 in the five-year. many will be disappointed with regard to the ecb. no rate cut so i do think that the dollar index under a little pressure. probably the correct trade to have on. >> that's going to be happening by the same time twitter comes to market tomorrow morning so we have a perfect storm of news coming at that point. >> i want to bring keith back in here because he's really looking at this market a little more skeptically. are you shorting the market? >> yes, i'm beginning to
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actively look for shorts in insurance because i don't like to push back on obama care and the stress tests are not really stress tests, they're really survival after the fittest and back slap each other for having avoided contagion. but you know the other thing about this rotating into global companies, they've got something that washington doesn't, they've got experienced executives who understand how money actually works. so if there's a profit to be had, they can shift their operations around the planet. the government can't do that the only out they've got is either print, to wait or to repeat doing what they've been doing to begin with and it hasn't worked. >> all right. i know you want to jump in on that but we don't have time now. >> nodding your head. >> you'll be around -- i think -- keith, i think you just got josh to completely change his mind about this market. we'll find out. >> i'm done. >> no. he's out. >> thanks, everything. >> thanks for joining us. >> appreciate your time we are in the final stretch of trading 50 minutes before the closing bell sounds and a market is in record territory up 120 points
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on the dow jones industrial average. 0.75%. >> pretty much on high record watch. coming up whether there's still an opportunity to buy into this market even at these seemingly lofty levels. >> also, the good news on obama care. people who did not have insurance have it but the bad news is they will have premiums to pay every month, up next we will hear from an economist who says the payments could take a bite out of the economy. >> and then have you heard, twitter is set to price its ipo after the bell tonight, coming up, full team coverage of what is said to be surely the year's most lively anticipated initial public offerings. coming up, stay tuned. tdd#: 1-800-345-2550 trading inspires your life.
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welcome back. the market is on fire. the dow on track to close at a record high today. the heat is still on, though, health and human services secretary kathleen sebelius again on capitol hill today being grilled over the obama care rollout difficulty. >> this as the president heads to texas tonight to talk up his signature law but bertha coombs joins us with today's edition of how obama care turns. bertha. >> bill, you know, there are some in the hearing today calling for kathleen sebelius's
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head right to her face. interestingly enough the centers for medicare and medicaid services cms announcing its chief information officer tony trunkle will be stepping down effective next week. he oversaw the payment over i.t. services and he was according to some documents one of the officials who helped to prove the delay of a full security assessment of miss sebelius certainly got a lot of heat from both sides. max baucus warning her that if the website is not going to be fully operational at the end of the month she had better not wait until the last minute to tell congress and the american people. among the most contentious back and forth questioning coming from texas senator john cornyn over if you like your health care you could keep it despite the fact that some documents showed the administration knew there would be a lot of people
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in the individual market who would be losing their plans. miss sebelius shot back that the numbers in those documents are inaccurate. >> that was a look back at how much churn there is in the marketplace. that was not a projection of what was going to happen in 2014. >> senator cornyn did not hide his contempt for that answer. >> the only thing i can conclude is that it's impossible to do something in this administration that gets you fired. it's impossible. you can lie to the american people. you can consistently misrepresent the facts, but it's impossible to get fired. >> president obama has maintained his support of secretary sebelius. he will be in dallas this afternoon talking to volunteers and navigators who are helping people sign up but, you know, bill and maria, this issue entered into the political race. there are those who say that the race for the governor in virginia became much closer than
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expected in part because of this issue about the president having said if you like your plan you can keep it and so many people now finding that they can't. >> all right. bertha, thanks very much. let's talk about this. shall we. our next guest suggests obama supporters should be careful what they wish for. people paying their new premium bills beginning in january instead of having that money to spend at storrs like walmart and target could strike a blow to the economy down the sglood yeah, joining us is todd buchholz former white house economic adviser to the first president bush also with us our own steve liesman. gentlemen, good to see you. >> good to be here, maria. >> explain the theory. >> well, look, if obama care fails because of the website, well, then that's terrible for the president. let's say it succeeds and give it the benefit of the doubt and say the president is right and 30 million people sign up, and they start getting insurance, but they start paying premiums. those premiums maybe they'll be
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a bargain, $100, $200 a month. >> they haven't been a bargain. i see your point. >> let's give the president all the credit and say it's going to work. that's by my calculations about $77 billion of spending by consumers that they won't have to spend at mcdonald's and target and ford motor -- that's a lot of money. more than the president's stimulus plan spent on infrastructure or for tax cuts. it could be in an economy right now where consumers look a little bit shaky, it could be just enough to dislodge us from this tentative recovery. >> steve, you on board? >> not exactly. and i question todd advisedly because he's taught me about economics over the years through his books. so i just have a few problems with his analysis. todd, let me start with this. the full amount of money you would not believe is a dead weight loss in that the payment of this premium would come with the use of services so on the one hand you have the ledger of
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the -- the payments of insurance, on the other hand there's the use of services that would tend to increase gdp. obviously they're not going to spend the full premium but you can't take the full amount of premium spent and count it as a dead weight loss to gdp. >> well, i think, steve, you make a right point in the long run or over the course of a year or so. the insurance companies get that money. they will spend that money. >> right. >> but in the short term over a three, six, nine-month period over 2014, those consumers will not have that money they otherwise would have and that is a drag on the economy. i have to tell you last time i was on the program earlier in the year, maria asked me about consumers and i said there are three things american consumers are buying. homes, automobiles and greek yogurt. well, greek yogurt sales are still doing fine but we've had a bit of a lull in housing and autos and i'm concerned that obama care will add to that. in addition, the question of
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confidence, the american people and their confidence in whether they're going to keep insurance is now an issue. i was at the pediatrician the other day, and they handed out these flyers. this is a flier from scripps, right, in california and they told consumers if you have aetna or united health care they have pulled out of the state of california. >> right. >> how many american middle class consumers are now concerned they're going to get an envelope in the mail that will -- >> and they're getting the envelopes. >> that will defact -- >> they're getting the cancellations notices on. >> we've had mark on -- >> the post office is doing a great job delivering cancellation notices. >> to steve's point you're only looking at a short-term impact but acknowledging long term this may be a wash for the economy. >> long term, look, is it good for people to have insurance? yes. is it good for people to pay for insurance? yes. but if you're talking about fiscal stimulus or fiscal contraction, those keynesians are supposed to believe this.
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they should be worried about that. >> it seems to me, everything you're presenting here in terms of the premiums, you know, going toward people's health care and not going toward consumption, this was something that anyone could have predicted this. is not a new story. this is -- wouldn't the powers that be have put this into their own models? >> because they're not so smart after all. look, you know, president obama came into health care. he was like the miley cyrus of policy. he was young, daring and now the emperor has no clothes so he was determined to do this and who cared about the rest of the economy? obviously many americans when he took office was hoping he'd focus more on jobs. he thought this was the priority. maybe it is the priority, but there are up sides and down sides to this and i'm here to talk about the risk if obama care succeeds it can hurt the economy. >> steve, in the meantime, though, as we get ready for the full implementation of this health care plan, hasn't there
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been some reticence on the part of individuals and corporations who are worried about exactly what the cost will be and as a result we are seeing some holding back of spending in this economy? >> whether or not that's related to obama care i don't know that the data show that with any definitively at all, bill. there's a lot of concern coming out of the shutdown and the debt ceiling debate and i think obama care is perhaps one layer of uncertainty in a broad strata of uncertainty that's out there in the economy. but just getting back to the more long-term issues, i think that if we end up rationalizing health care cost and i think one of the things we're talking about is the idea that people don't go into the emergency room for example for their medical care, then ultimately that's long-term more efficient for the economy, more cost effective and it could have the effect of bending the cost curve and, yeah, there's a cost right now and i think certainly the obama administration would have believed three years earlier when it conceived of this idea
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the economy would be in better shape and so the couple ten tth would have been able to withstand it but ultimately talking about more long-term efficiency and productivity in the use of health care dollar that ends up being positive, i think. >> we got to go. >> all right. gentlemen, thank you. >> todd, give me a call. we'll talk about it off line. >> love to hear more about the greek yogurt indicator in the economy. 35 minutes left in the trading session here with the dow up 126 points today. we're back in record territory. >> so you think stocks are hot right now. how about big coins hitting their own record highs. the bitcoin is back bigger than ever. is it a currency can you depend on? i'll have to weigh in on this debate, bill. you know where i am on this. >> yes, i do. also, the news on tesla's earnings broken on this program yesterday. shares are being crushed today after the disappointing outlook. is this high-flying stock simply
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out of juice or is this a great buying opportunity? both sides of that debate, as well coming up on the "closing bell." ♪ ♪ here we are, me and you ♪ on the road
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welcome bam. check the markets.
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the s&p 500 trying to close at a record high, as well. uncharted territory. the dow industrials above its all-time high, up 125 points. we are in uncharted territory. it looks like we are going to see another all-time high for the dow tonight. dominic breaks down the movers. >> let's begin with ralph lauren moving higher on expectations of a strong holiday seeing and raised its dividend about 12.5% to $1.80 a share. microsoft hitting a 12-year high and earnings could reach $3.80 per share versus the consensus of $2.67. he raised his price target 5 bucks to $45 a share and kept a buy rating on microsoft. also hall by burton on the rise, the oil drilling service company raised quarterly dividend to 15 cents a share and then there's data storage and security company, barracuda networks
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having a strong market debut after pricing 4.1 million shares at 18 bucks apiece up 0% and finally a tough day for tesla which disappointed investors with its quarterly earnings report, the stock is still up, though, 350%, maria, and bill for the year, back over to you. >> thank you so much. those after-market moves for tesla showing up today accelerating today, the stock hammered after its outlook was deemed disappointing last night. if you own this stock, what to do now and if you don't, is now the time to get in? let's talk about it with a bull and bear. colin rush from north land capital markets is a believer in tesla. while cole wilcox made quite the bold call yesterday and said he expects it to be cut in half and says today is just the beginning of a long trek downward. gentlemen, thank you both for joining us here today as we watch the bull and the bear going. cole, really, cut in half? that much. >> absolutely. look, tesla was, you know, one
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hell of a ride in the summer on the way up and i was there the whole time but the reality is that all the good traders have left this party and all you have left is a bunch of drunk people hanging out, you know, hoping to get lucky at the end and just not a good place to be as we go forward in time. >> wow, what an analysis. what do you think. >> i think he's full of it. honestly the folks that traded apple and sold it at 100 were pleased for a short period of time and missed the rest of the move. >> you think tesla is like app "journal." >> i think tesla still has a significant a upside. there is a transformative technology platform changing the automotive industry. >> do you like the company? >> no, i think i love the company. i think ilan is a genius and fully execute on what they're doing but i'm talking about trading a stock, not a company and, you know, this thing is way, way ahead of where the economic reality is at over time and the momentum is turned and ultimately momentum traders are very, very fickle crowd and these things can get crushed in
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a hurry similar to what you saw in netflix a few years ago. >> okay. >> what do you attribute the shortfall last night? >> this is about guidance and expectations. they had a significant supply constraint in 2014. that's been alleviated right now. there is a significant number of industrial parts that take a while to ramp. different than a technology platform taking a little bit of time, more so than a lot of technology investors expected and we'll see that alleviated in 2014. >> you think the fundamentals will catch up with the stock price. >> without a doubt. you know, we see significant gross margin leverage here, increased gross margins 7 points this last quarter and we see it will fall to the bottom line into 2015. >> do you own a tesla. >> i don't. >> why not? >> you can talk to my boss. i need to get paid a little bit more. >> okay. >> fair answer. >> cole, do you own one? >> i do not own a tesla, no. and i don't own the stock, i have a short position in it so we'll see who's right. that's what makes a market.
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>> i mean he's saying he feels fundamentals will catch up to the stock price. you think the stock price is going to come back down to more accurately reflect the fundamentals, i guess >> that's exactly what i think. i think that the fundamentals of the company going to take five years for them to catch up with where the valuation is at and this stock does not trade on fundamentals. it trades on momentum, belief, hype and in the beginning, you know, that's on the way up that's a fantastic place to be but the hangover in this party is going to be very, very strong as we go forward in time and people are going to get hurt being long. >> all right. good discussion, guys. >> thanks, gentlemen. >> thank you. that's what makes a market. >> that's what makes a market. this market is red hot and on wall street today the dow up 118 points at 15,736 with just about 30 minutes before the close. >> when we come back the ceo of ing's u.s. division tells us how financial reform is affecting the banking giants' bottom line. talk about, oh, all kinds of things coming up. >> lots of stuff, year end business for the financial services industry and some
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investors are so excited for twitter's ipo set to price after the close tonight that they can't even express themselves in less than 140 characters. it could come as soon as half an hour from now and have it for you first and a sober look at what it's worth and was it worth the investment? stay with us. bny mellon combines investment management & investment servicing, giving us unique insights which help us attract the industry's brightest minds who create powerful strategies for a country's investments which are used to build new schools to build more bright minds. invested in the world. bny mellon. a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected.
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show you shares of ing. the stock up nearly 8% after stronger revenues for the quarter. their run since its ipo in may shareholders have been rewarded talking a 70% return. >> what a performance. right to it and talk to the man in charge, rod martin joining us right now. he is the ceo of ing u.s. good to see you. >> soon to be voya. >> which means. >> it's a derivative of voyage. it's the voyage to retiefrment. >> how was the quarter? >> we had a solid quarter. >> tell us about it. >> we had solid performance with our retirement business which is our largest business. we had very solid performance with our investment management business which is our fastest growing and insurance solutions business key ally contributing. >> we were talking during the break about the dearth of
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savings out there. people are not saving enough. i can never remember a time when we said, people in the united states save too much. right but especially now with fed policy as it is, they don't want people saving. >> people are not saving enough. and if you think about the following statistic, every day in america, 10,000 people turn age 65 and will for the next 19 years. it's one of the biggest challenges and, frankly for companies like ours biggest opportunities that we've got and a whole focus of our company is retirement readiness, helping prepare people for that path. >> but they have to take more risk in order to be prepared for a time because savings are not going to cut it. >> they have to take more risk and they have to plan. it's just not a moment in time decision. you have to be regularly involved actively in that process. >> how do they do it? >> i think they -- you know, one of the thesis of our strategy around retirement readiness is meeting their expectations as when and where they want to.
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some people want to do it by pure phone and digital. some people want to do it on an adviser base. some want to do a combination of that. and a challenge that the industry is facing and i think we're helping solve is meeting those expectations. >> but you're right. people need to save more and particularly in light of kind of the current environment. >> it happens right now. here we sit at all-time highs in the u.s. stock market and we still don't have a great amount of participation by the individual investor in this market unless they're going through a 401(k) or something like that? sure. >> there is just no interest in this market at these levels. >> and, again, that's where most of our participating. we are the third largest retirement player in america. you know, if you think 401(k) or 457 or 403(b) so a lot of opportunities for our customers. we have 5 million retirement customers and 13 million customers overall that depend on a company like ours to provide them advice and counsel but they have to take action and have to engage. >> can you give us some guidance about how businesses today
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leading into year end, a lot of people want to know what the bonus pool is going to look like. how would you characterize things? >> we've had a very good year. and i would say things are certainly better than cherp for us and our business than it was a year ago. and we're cautiously optimistic about 2014. in terms of the business environment and what we're seeing is a little different than what's printed every day in the press. we're seeing more people taking action than perhaps the common -- >> what's the press missing? >> when i travel to our sites around the country and visit with our customers in the u.s., i'm feeling that their business is healthier than what i read in the paper or frankly read in the media from time to time. >> right, right. 2014? >> we're feeling terrific about where we are this year and we're
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very much optimistic about continuing to execute. >> have you had an obama care issue? is this becoming a bigger expense than you thought? >> i think it's too early to tell to be honest. i think there's an opportunity for a company like ours in our insurance solutions business voluntary benefits is part that have product suite and i think more companies are going to be offering those choices as a result of what's happening in our health care system. >> and last question, tapering, seems delayed indefinitely at this point by the fed. interest rates to remain at historic all-time lows. that can't be good for anybody's business like yours. >> it's a great point and when we built our plan, for the 400 to 500 basis points over the 2012 to 2016 year, it was with that in mind so any interest rate improvement is additive to our plan. but we've -- we're very comfortable with the 30 plus initiatives that we've got that we can do that as evidenced by the 160 basis point improvement
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we've done this year. >> got to be tough with this level, though. >> it's tough. >> rod, good to have you on the program. >> great to be here. >> appreciate your time. >> ing usa. here heading toward the close now with the dow still up 109 points. we're in record materiality for the industrial average right now. >> well, you can find bullies in just about every neighborhood. twitter is to different. up next a look at twitter bullies on the social platform as it prepares for its ipo. we'll explain. i bet you know at least one twitter bully. >> as a matter of fact, i do. i do. after the bell, we'll be counting down to the twitter ipo pricing with an all-star panel of experts who will tell us if twitter can avoid the pitfalls that made facebook and if the price is right as well coming up. . explaining my moderate to severe so there i was again, chronic plaque psoriasis to another new stylist. it was a total embarrassment. and not the kind of attention i wanted. so i had a serious talk with my dermatologist
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we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. welcome back. welcome back. over to dominic for this market flash. >> check out some of the big retailers like jcpenney, sears, best buy. heading lower. investors are concerned about a kneel central survey that shows that many americans don't plan on shopping on black friday, the day after shotgun. that's given a lot of investors
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some -- at least some worry about the strength of the holiday shopping season so watch the big retailers. maria, back over to you. >> twitter could price its highly anticipated ipo any time after 4:00 today. we are on twitter watch. the price and kayla tausche with the latest. also how this will play out. kay kayla, how will we learn the stock price? >> well, maria, it will all happen after market. the goalpost keeps getting higher. will price above $25 per share. that was the previous high end of its increased range. ba $27 per share will be predicted. if management signs off, twitter would debt a rich valuation for this not profitable company yet. $19 billion actually diluted including that employee compensation. drawn much attention in washington too with some in congress trying to buy into the ipo. earlier today the house ethics committee reminded congress of the stock act and the
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restrictions on participating in ipos. in a manner other than is available to the members of the general public, ipo participation, however, is normally not available to the general public, end quote from that memo. the public won't be able to get in until tomorrow but some traders are taking twitter profits, take a look at shares of these two vehicles that have been investing in secondary twitter share, gsb capital and firsthand both down more than 4% today as being up sharply and on the rise all year. expecting underwriters to meet on that call to finalize the price in moments after the closing bell but certainly an interesting story. twitter valuation nearing $19 billion if it gets that $27 price. guys, back to you. >> wow. amazing. thanks very much, kayla. now, meanwhile, twitter has become a place that many consumers go to complain about businesses and public figures. if they don't like what they're hearing. julia boorstin looks at it.
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>> well, bill, what better way to get what you want from a company than to tweet complaints to the whole world. now, 16% of twitter's weekly users go to the service to express dissatisfaction with the product or service. this is according to new cnbc/ap poll more than the 13% of weekly users who use twitter to find information about services or products. now, that huge opportunity to address customer service is a key reason 77% of fortune 500 companies have active twitter accounts. companies as diverse as ebay, mcdonald's and jetblue promote the fact they're listening to customers. >> we engage as best we can. i think it's funny, the first thing we have to conquer and i think the social media team is so good is trying to figure out when customers mention jetblue are even inviting an answer. sometimes they're talking to themselves and sometimes they want to hear back from us so that's the first challenge. >> twitter bullies can demand the impossible like a seat on a
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full flight but more and more companies know it's a great way to connect with consumers on both the good and the bad. now, maria today on cnbc, wendy called it a great listening tool. >> we've got 12 minutes before the closing bell sounds and a mark still in record territory. the dow jones industrial average up 110 points. if we close there, that would be an all-time high for the blue chip average. >> looks like we may do that for the dow. how should you be investing and the kind of year we've had so far. we'll talk about it when we come back. ♪
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news onave breaking we have breaking news on amazon. over to john ford. >> yeah, maria, amazon's ceo jeff bezos sold quite a bit of stock. a million shares at an average price of $312.64 per share according to a regulatory filing. it's interesting for a couple of reasons. it's been three years since he has sold a stake this big. last year he sold a group of shares that number just under 800,000 but he hasn't been selling in the millions since 2010. and valuewise, due to the
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stock's big run-up this is the most valuable chunk of shares he's ever sold at around again $312 million. this is classified as a 10b51 preplan sale. it's interesting because he hasn't been selling this volume of stock for about three years now. netting quite a good value, maybe he's out shopping. who knows? i reached out for comment but haven't heard back. >> i know it's speculation but isn't that what he paid for "the washington post". >> that's about a quarter billion for "the washington post" and this is around 312 million so maybe it's walking around money that replenishing his stash. >> six months' savings. >> did you talk about how much he owns still? >> what did you say, 85 million. >> 85 million shares left so this is just over 1% of his total stake. barely a dent. >> thank you. >> walking around money. we've got a little more walking
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around money for investors with the dow up 110 points. joining us to talk is david and kenny. what's with the rally. >> i think it's certainly we're stuck in that same 1747, 1775 range, up ten, dunn ten so in the same place but people are certainly looking forward to the strong ipo market. twitter is all the rage see money coming out of the nasdaq and russell names and move moving into the dow names. it's a safety trade? >> high-profile sell-off and facebook is down, google is down. you know, some of the high-profile technology stocks, you think somebody is raising some money to get ready -- >> should we make that jump? >> can you make that connection and think that's where it's going? i hadn't thought about it but i suppose -- it's an interesting argument to make. although my sense is that there's enough demand out there already. that people respect necessarily going to have to sell facebook to buy twitter. >> what do you think, dave? >> if the fed wasn't pumping $85
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billion a month into this market, i would think we'd be ripe for a correction. but that's what they're doing and there's a ton of liquidity out there. >> probably 3 billion into the many market today alone so therefore it adds to kind of the tone, right? >> when the market is up more than 10% by the end of october, 82% of the time it finishes positive in october -- in november and december so the odds would favor we have more to run. >> so why would large as set managers, the guys that take tear time why would they sell into it if it's only going to move higher. the ones taking advantage are the day traders but the long-term asset manager is going to be very methodical and if they sense that the rally is coming which i think it will then they'll let it run. >> did you see that report yesterday that the fed may make a change in policy that they're not going to use the unemployment marker of 6.5% but now they're going to go down to 6, even 5.5%? what do you think? what's the impact? >> i think that means that there's probably more taper
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rather than less but if you think about it, even if they start to taper and let's say they taper by $10 billion a month, there's still 75 billion a month going into the market so still a ton of liquidity in the market. >> you may be skittish about this market and the valuations but you can't ignore the fact it goes up because of the quantitative easing so do you still buy this market. >> i've been looking for areas that are undervalued so we tend to focus on areas unloved, undervalued in an up trend and talk about emerging markets. emerging markets is some of the cheapest assets out there trading at 12 times earnings compared to the u.s. which is fairly valued. >> but as long as the fed will keep adding it will certainly benefit. the fact they'll lower that number only means that they're going to stick around longer. not going to taper. they're going to stick around longer which will give you another trust. >> we have $375 million for sale so it looks like we're going to come out have a little air come out of this. >> you might get a little air but i still think we're very much in that range. i don't think it's anything for
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anyone to get nervous about but natural asset reallocation, people taking some money off of names that may be performed well but there's certainly by no means is anyone bailing out of the market at all. >> it's just money management. >> one other thing to consider which is dark which is we haven't seen this great rotation out of bonds and into stocks and that's coming. i think that's coming at the end of this year or next year. >> all right. >> thank you, gentlemen. good to see you both. appreciate it. >> we'll come back with the closing countdown. >> yes, we will and the pricing of the ipo of twitter could happen any moment. instant analysis and reaction. stay with us as we count down to the ipo pricing. we'll hear from investors who are buying it and wanting to sell it. back in a moment. mike rowe here at a ford dealer with a little q and a for fiona. tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern.
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[ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs.
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six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. two two minutes left. here's the dow. all-time high with a gain of 118. only needed 62-point gain to hit all-time high territory for the dow today. the nasdaq, though, went the other direction. some very high-profile companies, apple, google, facebook and most especially tesla. down today on an otherwise up day and pushed the nasdaq down a quarter of a percent and get ready for twitter which prices in a little while here. peter costa, how do you think it'll do? >> i think it'll do well.
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you know, i wouldn't be a major buyer percentage of wise above the ipo price and i think that's what people -- a lot of people are starting to pull back. i think they've priced it fairly. i think long-term it's probably a very good tock to be involved in. you know, but if it opens way above that ipo price, i wouldn't even touch it. >> and, again, we're waiting for that price to be announced tonight, kayla tausche will have it for us. stick here on "closing bell." could go as high as 27 or $28. >> yes. >> per share in that regard. 120-point gain on the dow. what is this rally about? >> you know, i think if we go up another 30 points we'll be at the all-time inflation adjusted high which i think is 15-8 or right around 15-8 so close to that. you know, money is going to where the earnings are and they're in u.s. stocks, you see the tech stocks got hurt today but talking about financials and talking about the utilities, a lot of good groups did very well today so, you know, where else is money going to go? >> you know.
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that's the bottom line. >> that's a reason to buy stocks, i guess. still the tapering. >> thanks, peter. see you later. that's the first hour. here we go. all-time high for the dow just shy for the nasdaq -- for the s&p and the nasdaq lower today. stay tuned for the pricing of kwit on the second hour of the "closing bell" with maria. see you tomorrow. >> and it is 4:00 on wall street. do you know where your money is? hi, everybody. i'm maria bartiromo on the floor of the new york stock exchange, a big rally for stocks pushing the dow into uncharted territory as we await the pricing for twitter ipo. it could happen at any moment. we are on it and bring you details as soon as thathas. we are in touch. meanwhile, take a look at how we're finishesing the day. another record setter. dow at 15,745. yes, that would be an all-time high closing high for the dow up 127 points on the dow, the nasdaq was under selling pressure interestingly enough,


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